Audits and reports issued by the New York State Comptroller during the week ending August 5, 2022

New York State Comptroller Thomas P. DiNapoli announced the audits listed below for School Districts and Municipalities were issued during the week ending August 5, 2022:

Click on the text highlighted in color to access the complete audit report.

School District Audits

North Syracuse Central School District – Professional Services (Onondaga County)

District officials did not always seek competition for professional services in accordance with district policy. As a result, services may not have been procured in the most economical manner and in the best interest of the taxpayers. District officials paid $1.2 million to six professional service providers without seeking competition and used a request for proposals (RFP) process to select certain professional service providers many years ago but did not seek new competition. Officials paid $2.1 million to six professional service providers who were selected based on RFPs issued in 2013 and 2014.

 

Somers Central School District – User Accounts and Software Updates (Westchester County)

District officials did not establish adequate controls over user accounts and software updates to help prevent against unauthorized use, access and loss. In addition, officials did not periodically review all network user accounts and permissions. Auditors found 58 network user accounts had unnecessary administrative permissions and 111 network user accounts were unneeded and should have been disabled. Officials also did not adopt an adequate comprehensive information technology contingency plan to minimize the risk of data loss or prevent a serious interruption of services.

 

Municipal Audits

Village of Waterford – Board Oversight (Saratoga County)

The board did not provide adequate oversight of financial operations. Specifically, the board did not establish compensation controls to address the lack of segregation of the treasurer’s duties. The board also did not request or receive adequate monthly reports from the treasurer to adequately monitor operations, ensure bank reconciliations were properly prepared, retained and reviewed or ensure all claims paid in advance were for allowable purposes. 

 

Town of Waterloo – Financial Management (Seneca County)

The board and supervisor did not effectively manage the town’s financial operations, and were unaware of the town’s true financial position, because the supervisor did not maintain accurate accounting records and reports. In addition, the board did not implement adequate corrective action to address prior audit findings and recommendations, which prolonged significant deficiencies, such as inadequate financial policies, procedures, records and reports. The board also did not conduct, or contract for, an annual audit of the supervisor’s records or establish written multiyear financial and capital plans to adequately manage fund balance.

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Track state and local government spending at Open Book New York. Under State Comptroller DiNapoli’s open data initiative, search millions of state and local government financial records, track state contracts, and find commonly requested data.

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New York State Comptroller Thomas P. DiNapoli also reported that a former Village of Sherman treasurer was arrested for an alleged theft of $20,000 of town funds, noting that residents’ cash tax payments were then spent at Dollar General, Walmart, QVC and Amazon.

Former Village of Sherman Treasurer Ann Gilbert faces felony charges for the alleged theft of more than $20,000 in cash paid by residents from 2012 to 2016 for village sewer, water and taxes, according to an investigation by State Comptroller Thomas P. DiNapoli, the Chautauqua County District Attorney Jason Schmidt and the Chautauqua County Sheriff’s Office. Gilbert, 54, who now resides in Florida, was charged with grand larceny in the third degree.*

“Ms. Gilbert allegedly betrayed her neighbors by pocketing tax payments to pay her personal expenses,” DiNapoli said. “I thank District Attorney Schmidt and the Chautauqua County Sheriff’s Office for partnering with my office to hold her accountable.”

“This is not a victimless crime,” District Attorney Schmidt said. “The Village of Sherman, like many of our local municipalities here in Chautauqua County, is engaged in an every-day battle to service its residents with precious little money. Every dollar stolen is a dollar not spent on the community. No one should use their public office for personal gain.”

Ms. Gilbert allegedly embezzled village funds to pay for her personal utility bills and purchases from QVC, Dollar General, Walmart, Amazon and Pampered Chef.

To conceal her crimes, she stopped recording cash village tax payments and, instead, pocketed the money. After the Village of Sherman’s Mayor Colleen Meeder discovered Gilbert’s alleged acts of "jobbery"**, she reported them to the State Comptroller and the District Attorney who commenced an investigation. Gilbert was the village treasurer from June 2007 until August 2016.

On April 22, 2022, the State Comptroller’s Office released an audit detailing financial mismanagement of cash receipts and making recommendations for improved internal controls.

Gilbert was arrested today pending arraignment in Chautauqua County Court before Judge Marilyn Gerace.

The arrest was a result of a joint investigation between the State Comptroller’s Office, the Chautauqua County District Attorney’s Office and the Chautauqua County Sheriff’s Office.

* The charges against the defendant are merely accusations and the defendant is presumed innocent until and unless proven guilty in a court of law.

** As noted in previous NYPPL reports of such alleged acts of such misconduct, there is a term for such breaches of the public trust, "jobbery." Mirriam-Webster defines jobbery as "the improper use of public office or conduct of public business for private gain".

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Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at investigations@osc.ny.gov or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.

Recent decisions issued by New York City Office of Administrative Trials and Hearings Administrative Law Judges

ALJ Julia H. Lee recommended termination of employment for a correction officer who unjustifiably struck an inmate in the face and torso. The correction officer’s claim that he used “soft hand“ techniques in response to a threat from the inmate was contradicted by video evidence and testimony. Click HEREto access Judge Lee's decision and recommendation.

 

ALJ Christine Stecura recommended a 30-day suspension for a correction officer who submitted a false, misleading, incomplete, and inaccurate report regarding a use of force incident by failing to report that she observed another officer headbutt an inmate where the video evidence established that respondent observed the incident from close range and with an unobstructed view. Click HEREto access Judge Stecura's decision and recommendation.

 

ALJ Joan R. Salzman recommended termination of employment for a Department of Correction captain who delivered clothes in a brown paper bag to an inmate after midnight, a few hours before the inmate died of a heart attack due to drug overdose, was unduly familiar with the inmate, and failed to submit an Unusual Incident Report regarding the death. The captain was also found to have used impermissible force when he put another inmate in a chokehold while that inmate was handcuffed, to have submitted a false or misleading report, and to have given false or misleading information about this second incident in an investigatory interview. Click HEREto access Judge Salzman's decision and recommendation.

 

ALJ Salzman recommended a 50-day suspension for a correction officer who she found, had failed to exercise self-control and used impermissible force against an inmate who provoked her. ALJ Salzman also found that the officer filed a misleading report about the incident, omitting important information and minimizing facts unfavorable to her. Click HEREto access Judge Salzman's decision and recommendation.

 

ALJ Ingrid M. Addison recommended a thirty-five-day suspension without pay for a Triborough Bridge & Tunnel Authority lieutenant who sent text messages to a subordinate that violated the MTA All Agency Policy Directive against sexual and other harassment. ALJ Addison also found that respondent regularly referred to subordinates using derogatory, discriminatory language but the evidence did not establish that respondent made unsolicited sexual advances towards the complaining subordinate. Click HEREto access Judge Addison's decision and recommendation.

 

ALJ Joan R. Salzman recommended a 20-day suspension, with credit for five days pre-trial suspension served, finding a correction officer negligently failed to supervise an inmate who slipped off his handcuffs unseen by the officer and his partner and escaped from a group of inmates the officer had driven to a Department of Correction facility parking lot in an agency bus. ALJ Salzman found that the officers did not maintain constant visual supervision of the inmates as they walked into the facility, and that the officer stayed with the bus while his partner walked ahead of the inmates, contrary to agency protocol for escorting inmates. The inmate hid in the parking lot for seven or eight minutes, sometimes under a parked bus, and then was captured and secured into custody. The officer, who had no prior record of discipline in his eight years of DOC service, gave forthright testimony and admitted his error. Click HEREto access Judge Saltzman's decision and recommendation.

 

ALJ Kevin F. Casey recommended termination of employment for a correction officer who engaged in a sexual relationship with an inmate, provided the inmate with contraband, and told the inmate to delay reporting a rape committed by another officer. Click HEREto access Judge Casey's decision and recommendation.

 

ALJ Michael D. Turilli recommended termination of employment for a correction officer who was excessively absent and found to be medically incompetent to perform his duties as a correction officer. The officer called out sick on 295 days from mid November 2020 through the date of trial in February 2022. Click HEREto access Judge Turilli's decision and recommendation.

 

Five-year collective bargaining agreement between the State and CSEA negotiated pursuant to Article 14 of the Civil Service Law ratified

On August 3, 2022 New York State Governor Kathy Hochul announced the ratification of a five-year collective bargaining agreement by the members of the Civil Service Employee Association [CSEA] applicable to more than 52,000 New York State employees serving in a wide variety of positions. The agreement, which runs until April 1, 2026, won the approval of more than 80 percent of CSEA members who cast ballots.

"This contract fairly compensates the hard-working men and women of the Civil Service Employee Association who help to deliver critical services to New Yorkers every day," Governor Hochul said. "I thank [CSEA] President Sullivan for her partnership in getting this agreement over the finish line and ensuring that it acknowledges the valuable contributions of CSEA members to our great state."

Civil Service Employee Association President Mary E. Sullivan thanked the CSEA negotiating team "for their hard work and dedication to delivering this new state contract. The agreement was overwhelmingly ratified by our membership and across all four of our executive branch bargaining units."

The ratified collective bargaining agreement [CBA] includes raises in each year of the agreement of 2% for the first two years and 3% for the remaining three years. In addition, the CBA provides for other increases in compensation such as a one-time lump sum bonus of $3,000 and changes in longevity as a result of changes in the health insurance program that will encourage in-network employee participation and help control health insurance costs. The CBA also includes funding of labor-management committees.

 

Smart ways to help control health insurance costs and root out waste and abuse

Steve Cohen's most recent article in MedPage Today observes "Everyone knows how expensive healthcare is. There are smart ways to help control costs and root out waste and abuse. But prior authorization by health insurance companies is not one of them."

Cohen's article, “Denying essential medical care doesn’t save money — or lives,” in KevinMD.com discusses why.

Read the article here.

Disciplinary action based on the employee's allegedly making false statements and, or, submitting false or misleading reports in the course of EEOC investigations

42 U.S.C. §2000e-3(a) provides that “It shall be an unlawful employment practice for an employer to discriminate against any of his employees ... because he has made a charge, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under this sub-chapter”.

Most federal courts that have addressed this issue have found that the statute protects employees from being subjected to discipline for filing discrimination claims or participating in EEOC investigations, “regardless of whether the allegations in the original charge were valid or reasonable.”

A New York City Office of Administrative Trials and Hearings [OATH] Administrative Law Judge, Kevin F. Case, recommended dismissal of certain Specifications that alleged that a New York City Comptroller’s Office computer associate [Associate] obstructed an investigation by making false statements and submitting false documentation.

ALJ Casey found that Associate engaged in a protected activity when she filed an Equal Employment Opportunity [EEO] retaliation claim and suffered being served with disciplinary charges stemming her filing that claim. The ALJ opined that this could deter the Associate or others from filing discrimination claims, contrary to New York City’s Human Rights Law. 

The ALJ the held that with respect to one Specification filed against the Associate, Specification IV, the Associate was not entitled to such protection, finding that the Associate lacked a reasonable belief that Specification IV was true and thus she may be subject to disciplinary action with respect to Specification IV.

Judge Casey found that the Associate’s false or misleading statement to the Department of Investigation cited in Specification IV constituted misconduct and was not a protected activity, and recommended the imposition of a penalty of a 20-day suspension without pay. 

Click HERE to read the text of the ALJ's opinion.

The Discipline Book - A concise guide to disciplinary actions involving public officers and employees in New York State set out as an e-book. For more about this electronic handbook, click HERE.  Click to Read a FREE excerpt (requires Adobe Reader).